BELOW are excerpts of viewpoints from two selected research houses on what investors can expect in the day ahead:
Inter-Pacific Research
There was no follow-through buying with the key index slipping on quick profit taking activities that left it below the 1,610 level at the close despite the key index making a fast start to the day as it climbed past the 1,620 level.
Many lower liners, however, still manage to tip higher on sustained bargain hunting even as market breadth was mixed again.
Still, most market players stayed on the sidelines following which traded volumes stayed relatively unchanged at 4.3 billion shares.
As market conditions are still unsettled amid the lack of fresh leads, this could still see the FBM KLCI staying rangebound for the most part.
As it is, market interest has thinned recently due to fewer available catalysts and with buying interest on the softer side, the recovery could still be left wanting.
Nevertheless, we also see selling pressure easing as the key index continuing its recovery from oversold which could see the key index lingering around the 1,600 level as it attempts to fortify a firmer base that could also help to preserve most of its YTD (year-to-date) gains.
Meanwhile, the firmer performance among key global indices overnight could help to sustain the rebound on Bursa Malaysia with the 1,610 level being the immediate target, followed by the 1,615 level. Below the 1,600 support level, the other support is at 1,595 points.
Malacca Securities Research
The FBM KLCI ended softer on the back of profit taking within banking heavyweights.
On Wall Street, meanwhile, NVIDIA has led the technology heavy S&P500 and Nasdaq charged towards new highs as the market is pricing in more solid earnings prospects from the AI (artificial intelligence), cloud, semiconductor chips and data centres.
Do note that NVIDIA has surpassed the US$3 tril market cap mark.
On the commodity markets, Brent crude rebounded significantly amid earlier than expected rate cut by the US Federal reserve in September despite the US crude inventories gained 1.2 million barrels last week. As for the FCPO (crude palm oil futures), its price continues to drift below RM3,900/metric tonne level.
The FBM KLCI index ended lower, retracing below the 1,610 level. The technical readings on the key index were mixed with the MACD Histogram extending another negative bar while the RSI maintains above 50.
The resistance is envisaged around 1,625-1,630 while the support is set at 1,590-1,595. – June 6, 2024
